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On November 1, 2020, Norwood borrows $450,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments
On November 1, 2020, Norwood borrows $450,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $112,706 each year on October 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2020 (the end of its annual reporting period). (b) The first annual payment on the note. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A and 2B Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.) S Period Ending Date 10/31/2021 10/31/2022 10/31/2023 10/31/2024 10/31/2025 Beginning Balance 450,000 373,294 290,452 100,982 104,355 Debit Interest Expense 112,706 112,706 112,706 112,706 (7,728) $ 443,096 + Debit Notes Payable = Credit Cash $ 36,000 $ 76,706 S 29,864 82,842 23,236 X 89,470 16,079 96,627 104,355 96,627 $ 209,534 S 442,272 Ending Balance 373,294 290,452 200,982 104,355 0 Total On November 1, 2020, Norwood borrows $450,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal payments of $112,706 each year on October 31. Required: 1. Complete an amortization table for this installment note. 2. Prepare the journal entries in which Norwood records the following: (a) Accrued interest as of December 31, 2020 (the end of its annual reporting period). (b) The first annual payment on the note. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 24 and 2B Prepare journal entries to record accrued interest as of December 31, 2020 and the first annual payment on October 31, 2021. No Date General Journal Debit Credit Dec 31, 2020 Notes payable 76,706 Interest expense 36,000 Cash 112,706 1 X X N Oct 31, 2021 Notes payable Interest expense Cash 82,842 29,864 O 112,706
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